BoJ Speculation Continues

{JN} JGBS: JGB futures added 4 ticks vs. Tokyo settlement levels (quoting JBM1), taking the lead from various global impulses flagged elsewhere.

• BoJ source reports continue to do the rounds ahead of next week's decision/the release of the Bank's monetary policy review, with the latest RTRS offering noting that "the Bank of Japan may tweak a three-tier deposit system at next week's policy review to exempt a larger portion of reserves from negative interest rates, said sources familiar with its thinking." The piece also noted that "there is no consensus yet on what changes the BoJ should make to its guidance on its exchange-traded fund (ETF) purchases to become more nimble, the sources said… While removing the guidances would allow the BOJ to more flexibly slow purchases when stock prices are booming, central bank policymakers are leaning toward leaving at least one of the two guidelines in place to avoid disturbing markets, they said."
• The latest BSI survey and BoJ Rinban operations headline locally on Friday.